Burying Salt Lake City’s heavy rail in a train box and revitalizing passenger service at the historic Rio Grande Depot is projected to cost between $3 billion and $5 billion.
However, fresh analysis from researchers at Utah State University’s Huntsman School of Business indicates that the proposed “Rio Grande Plan” could yield immediate financial returns, generating an impressive $12 billion for Utah’s economy within the first year of its operation.
The anticipated project could elevate the state’s annual GDP by more than $7 billion, making it a highly attractive investment.
Curtis Bishop, a graduate student affiliated with USU’s Analytics Solutions Center, highlighted the significant economic activity associated with the plan.
“This seems like a screaming deal to me,” Bishop commented, although he noted he is not an expert in the field.
The analysis suggests that rerouting passenger and freight rail through downtown would catalyze various economic benefits.
These benefits would stem from necessary demolition and construction jobs to build a train box through the historic rail corridor at 500 West, alongside the development of new homes, offices, and retail spaces in an area currently occupied by 75 acres of under-utilized railyard.
The report estimates that the construction and redevelopment phases, as well as the initial year of new rail operations, would create approximately 51,800 jobs.
Once the project is fully realized, around 13,600 permanent positions could be available in Salt Lake County’s office, retail, and hospitality sectors, with extra economic activity expected around current and future transit hubs throughout the Wasatch Front.
According to the report, these jobs and resultant household spending are projected to directly raise Salt Lake County’s annual GDP by $29 million, with indirect gains of $11 million and an induced effect amounting to $114 million.
This totals approximately a $155 million increase in annual GDP, with the project’s economic benefits extending beyond the county lines to surrounding areas.
The findings from USU were unveiled during a Wednesday press conference at the Salt Lake County Government Center.
The event featured grassroots organizers of the citizen-driven Rio Grande Plan alongside supportive elected officials, including Salt Lake County Council member Laurie Stringham.
Stringham emphasized that the county has largely run out of land for outward expansion and that there is an urgent need for comprehensive long-term planning surrounding housing, transportation, and land use as Salt Lake City grows vertically.
“There isn’t anybody out there saying ‘this is not a good idea.’ All they’re saying is, ‘Wow, look at the price tag,’” Stringham remarked.
She confidently claimed that if the political will is present, the project can indeed transpire.
Rep. Ray Ward, representing Davis County, voiced his constituents’ interests in improved access to and within Salt Lake City.
He pointed out that substantial funding has recently flowed toward development ideas put forward by wealthy individuals—referencing plans for a new sports and entertainment district around the Delta Center.
Ward argued that grassroots proposals, like the Rio Grande Plan, should receive similar recognition.
“If you need to get to your job in downtown, this is going to make your life easier,” he said, noting that the project creates vital connections to existing and future downtown developments.
The report’s conclusions align with prevailing views among transit advocates and urban planners.
They argue that investments in efficient transit systems yield greater returns compared to expenditures on car travel.
Unlike highways, which often become mired in increasing maintenance costs due to declining property values, effective transit can foster a cycle of improvement.
This cycle leads to increased private investment, thereby augmenting tax revenue that can be reinvested in infrastructure and operations.
Christian Lenhart, president of Via Rio Grande and co-author of the original Rio Grande Plan, stressed the urgent need to address at-grade rail crossings to mitigate potential conflicts.
As rail operators are now running longer trains with fewer crew members, they increasingly block intersections for extended periods.
Simultaneously, urban growth in Salt Lake City increases the challenges faced by residents and visitors trying to navigate between the increasingly busy east and west sides.
The timing is particularly critical as the Utah Transit Authority prepares to double FrontRunner train service to meet anticipated demand for the 2034 Olympics.
Lenhart argued that, given the grandeur of the Rio Grande Depot when it was built, there is no modern equivalent in terms of scale or elegance.
“You cannot build something of that grandeur and that size and scale today. The only way to have that is to reuse the buildings that we already have,” Lenhart asserted.
He expressed optimism about utilizing the Rio Grande Depot as a station, as it was originally envisioned.
Although the Salt Lake County Council has officially endorsed the Rio Grande Plan, the Salt Lake City Council has yet to provide a formal endorsement, despite general support.
On the other hand, the Utah Transit Authority and the Utah Department of Transportation have primarily focused their long-term strategies on the existing Salt Lake Central Station located on 600 West.
Perhaps more importantly, Union Pacific has not signaled any willingness to relocate its tracks or approve the redevelopment of its railyard.
Supporters of the Rio Grande Plan argue that Union Pacific stands to gain from eliminating at-grade crossings, as these crossings can lead to significant delays in rail operations.
Furthermore, managing speed controls necessitated by crossings often creates routing challenges.
City Council member Alejandro Puy, who represents areas along the west side, mentioned that he has tried to address unsafe crossings with representatives from Union Pacific multiple times.
He noted that train delays often affect his ability to be on time for appointments, which affects many residents reliant on reliable transit to access essential places like workplaces, schools, and medical facilities.
Puy voiced concern that a solution seems far off unless state leaders engage in discussions surrounding this project and its broader implications.
Additionally, he called for the involvement of landowners in the conversation to pave the way for progress.
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